Founded in 2006, Tangiers Investment Group, LLC, provides funding to small and midcap public companies. In its work, Tangiers Investment Group, LLC, works closely with small publically traded companies, providing much-needed financing for growth. Small cap stocks have been on a rally since the start of 2018. As at July 19, the Russell 2000 Index was up 10.58 percent and the S&P Small Cap 600 was up 12.49 percent. In comparison, the large cap S&P 500 was only up 4.78 percent from the start of the year. This means small cap stocks outperformed large cap stocks by a multiple of over 2. Why are small cap stocks performing so well this year? There could be several reasons for this. The first is tax reform. Since small cap stocks source a lot more of their revenue from the local market than large cap stocks, they are more sensitive to local tax changes. Therefore, lower taxes mean higher earnings.Another reason is domestic growth. As the domestic economy grows, small cap stocks benefit greatly since this is a big part of their market. Large cap stocks are less sensitive since they draw plenty of their revenues overseas.
San Diego-based private capital firm Tangiers Investment Group, LLC, specializes in strategic investments in small and micro-cap companies. As an employee-owned firm, Tangiers Investment Group, LLC, forms strong and flexible working and financial relationships with small businesses that result in accelerated growth and maximized profits.Companies with market caps under $300 million but over $50 million are categorized as micro-caps on the stock exchange. These make up just under 50 percent of all publicly traded American companies. While these investments come with some risks, the Russell Microcap Index frequently outperforms the S&P 500. Also, investing in high-potential micro-cap companies is a strategic way to buy undervalued stock. A number of large-cap companies now valued at billions of dollars began as micro-caps.Typically, there isn’t much information available about micro-cap companies, as they aren’t a main focus of the market. For interested investors, beyond the traditional metrics for analyzing return potential, understanding a micro-cap company’s business model is key. The performance of micro-cap companies is often dependent on a combination of internal and external factors. Investors should take note of significant changes in management, relevant legislation, and other potential advancements or threats.
